PRICE (Dollars per pound) 2 1 3 0 °° 9 8. Short-run and long-run effects of a shift in demand Suppose that the tritezene industry is initially operating in long-run equilibrium at a price level of $6 per pound of tritezene and quantity of 288 million pounds per year. Suppose a leading foodie video blogger raises awareness for a scholarly article that links tritezene consumption to premature hair loss and unhealthy skin. The viral video is expected to cause consumers to demand tritezene at every price. In the short run, firms will respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the viral video. 11 12 Supply 10 Demand 0 0 48 96 Demand 144 192 240 288 336 384 432 480 528 576 QUANTITY (Millions of pounds) Supply ? In the long run, some firms will respond by until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the viral video and the new long- run equilibrium after firms and consumers finish adjusting to the news. PRICE (Dollars per pound) 12 11 Supply 10 Demand 6 8 7 6 5 4 3 2 1 Demand Supply (?) vertical 0 0 48 96 144 192 240 288 336 384 432 480 528 576 QUANTITY (Millions of pounds) The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is horizontal upward sloping downward sloping run. in the long
PRICE (Dollars per pound) 2 1 3 0 °° 9 8. Short-run and long-run effects of a shift in demand Suppose that the tritezene industry is initially operating in long-run equilibrium at a price level of $6 per pound of tritezene and quantity of 288 million pounds per year. Suppose a leading foodie video blogger raises awareness for a scholarly article that links tritezene consumption to premature hair loss and unhealthy skin. The viral video is expected to cause consumers to demand tritezene at every price. In the short run, firms will respond by Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the viral video. 11 12 Supply 10 Demand 0 0 48 96 Demand 144 192 240 288 336 384 432 480 528 576 QUANTITY (Millions of pounds) Supply ? In the long run, some firms will respond by until Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the viral video and the new long- run equilibrium after firms and consumers finish adjusting to the news. PRICE (Dollars per pound) 12 11 Supply 10 Demand 6 8 7 6 5 4 3 2 1 Demand Supply (?) vertical 0 0 48 96 144 192 240 288 336 384 432 480 528 576 QUANTITY (Millions of pounds) The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is horizontal upward sloping downward sloping run. in the long
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 1E: The Potomac Range Corporation manufactures a line of microwave ovens costing $500 each. Its sales...
Related questions
Question
Transcribed Image Text:PRICE (Dollars per pound)
2
1
3
0
°°
9
8. Short-run and long-run effects of a shift in demand
Suppose that the tritezene industry is initially operating in long-run equilibrium at a price level of $6 per pound of tritezene and quantity of 288 million
pounds per year. Suppose a leading foodie video blogger raises awareness for a scholarly article that links tritezene consumption to premature hair
loss and unhealthy skin.
The viral video is expected to cause consumers to demand
tritezene at every price. In the short run, firms will respond by
Shift the demand curve, the supply curve, or both on the following graph to illustrate these short-run effects of the viral video.
11
12
Supply
10
Demand
0
0
48
96
Demand
144 192 240 288 336 384 432 480 528 576
QUANTITY (Millions of pounds)
Supply
?
Transcribed Image Text:In the long run, some firms will respond by
until
Shift the demand curve, the supply curve, or both on the following graph to illustrate both the short-run effects of the viral video and the new long-
run equilibrium after firms and consumers finish adjusting to the news.
PRICE (Dollars per pound)
12
11
Supply
10
Demand
6
8
7
6
5
4
3
2
1
Demand
Supply
(?)
vertical
0
0
48
96 144 192 240 288 336 384 432 480 528 576
QUANTITY (Millions of pounds)
The new equilibrium price and quantity suggest that the shape of the long-run supply curve in this industry is
horizontal
upward sloping
downward sloping
run.
in the long
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning